Quadrise Fuels International PLC (AIM:QFI, OTC:QDRSF) said it has signed a development agreement (JDA) with lignin biofuel specialist Vertoro, which supplies sustainable biomass-based biofuels made from agricultural and forestry residues.
Vertoro makes GEM, a crude lignin oil that is a potential alternative to methanol with CSO, an advanced crude sugar oil, a water-soluble by-product of the process.
Under the JDA, the two companies will look at ways to substitute CSO for glycerine in Quadrise's bioMSAR biofuel-based shipping fuel, which they say is a much cheaper option.
Opportunities to supply Quadrise’s MSAR blending technology for Vertoro's CSO plants or biorefineries will also be explored.
Quadrise said it has already successfully produced stable blends of CSO-based bioMSAR emulsions at a laboratory scale.
Diesel engine tests are now being jointly planned during the next 12 months.
These tests will scale up and accelerate the potential supply of low-cost CSO bioMSAR for the marine sector.
In a statement, Jason Miles, Quadrise’s chief executive, said: "Quadrise is delighted to have signed this JDA with Vertoro, having worked with their team for over a year.
"Lignin-based fuels are potentially the most price-competitive net-zero biofuel solutions and this joint collaboration fits well with our plans to commercialise bioMSAR."
MSAR and bioMSAR are enhanced emulsified synthetic heavy fuel oils designed for commercial container vessels.
In July, Cyprus -based MSC Shipmanagement said it would carry out proof-of-concept tests and operational trials using bioMSAR and MSAR fuels ahead of a potential global deal.